ISLAMABAD     -    The Asian Development Bank (ADB) has recently approved Country Operations Business Plan (COBP) 2020-22 that would increase the average lending to Pakistan to $2.4 billion per year from earlier $1.4 billion a year. “ADB will provide $2.5 billion in approved financing to Pakistan in 2019, and recently approved Country Operations Business Plan (COBP) 2020-2022 will increase average lending to $2.4 billion a year - a record increase over the $1.4 billion average from 2015 to 2018,” the ADB said in a brief statement on Twitter.  In addition, the ADB would leverage lending through the mobilisation of cofinancing and funding from other sources, including regional concessional resources. The new COBP will support Pakistan’s development goals and complement efforts by other development partners.

According to the COBP, the indicative resources available for commitment during 2020-2022 for sovereign operations total at $5.7 billion, comprising $4.3 billion for regular ordinary capital resources (OCR) lending and $1.4 billion for concessional OCR lending (COL). The final allocation will depend on available resources, project readiness and the outcome of the country performance assessments. Co-financing and funding from other sources, including the regional pool under concessional resources, will be explored. The proposed sovereign lending program for 2020-2022 amounts to $7.1 billion, comprising $5.6 billion from regular OCR lending and $1.5 billion from COL (this includes about 25 percent over-programming to respond to possible operational adjustments). The non-lending program for 2020-2022 is $22.0 million inclusive of ADB and other sources, majority of which are transaction TAs for several pipeline projects.

The ADB’s resource allocation has decreased from $2.245 billion from last COBP to $1.670 billion in the latest COBP 2019-22 for energy sector, while co-financing has increased from $290 million to $450 million. A new hydropower project is added to the 2020 pipeline.  The ADB’s resource allocation has increased from $1.394 billion to $1.500 billion for transport sector, while co-financing has increased from $100 million to $250 million. New projects added will focus on provincial and rural road development. The national highway project from 2019 pipeline is now firm in 2021 and new projects for 2022 will focus on provincial and rural road development. The ADB’s resource allocation has decreased from $1.2 billion to $300 million for 2020-2022 for public sector management.

The ADB’s resource allocation for education sector has decreased from $175 million to $100 million. The ADB’s resource allocation has increased from $470 million to $700 million, while co-financing has increased from $300 million to $550 million for water and other urban infrastructure and services.